Transaction
A transaction is an entry in the blockchain that moves a balance from one address to another.
Explained simply
When you send coins, you sign a message with your private key: "Transfer X units from my address to address Y." This message goes out to the network.
The computers in the network check: Is the signature genuine? Is the balance sufficient? Then the transaction is placed in a block and becomes part of the chain. From then on it is final.
Unlike a bank transfer there is no recall. What is confirmed stays.
From the familiar world
A SEPA transfer is checked and booked in sequence by your bank, a clearing house and the recipient's bank. In a blockchain transaction everyone checks at the same time, and the booking is the confirmation.
An example
A Bitcoin transaction is included in a block after roughly ten minutes on average. For larger amounts people usually wait for several more blocks to be completely sure.
Why it matters
Finality and traceability are why securities settlement providers are working on blockchain systems: settlement can shrink from days to minutes.
To pass on
„A blockchain transaction is a transfer that everyone checks at once and that cannot be reversed afterwards.“
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